Objectives - UB Flashcards
What are the types of business objectives?
- profit maximisation
- sales maximisation
- increase market share
- growth
- survival
- provision of a service
- social responsibility
- improving customer satisfaction
What is the public sector objectives?
• provide vital services to the public such as healthcare and education;
• make best use of the funds it has been allocated by the government;
• stay within an allocated budget;
• continually aim to improve the quality of the services offered;
• cut costs and reduce spending where possible;
• corporate social responsibility.
What will organisations in the third sectors objectives be?
• help their specified cause;
• raise as much in funding and donations as possible to help their cause;
• raise and increase awareness of their cause;
• increase the number of volunteers helping them;
• provide a service to those in need;
• survive and be able to continue to help their cause;
• continually aim to improve the quality of the services offered;
• corporate social responsibility.
Profit maximisation
• Shareholders can freely sell their shares
• Firm may be subject to a take-over
• Shares can fall in value
• Annual Accounts must be published –involves a cost
Sales maximisation
Firms will often lower price to encourage customers to buy their products with special offers
Increase market share
Through tactics such as advertising, a firm may gain sales from the competition and so increase it’s market share
Growth
Firms can achieve this by buying over another shop or joining with another business
Survival
This is a common goal for businesses that have just started out. Also, when the economy is in a recession firms may decide to have this as a goal.
Provision of a service
A firm may focus on improving the standards of service it offers to its customers by training its staff. Recently, hospitals were forced to place importance on this area
Social responsibility
This involves a business sacrificing some of its profits to invest in ways that improve the experience of the customer, for example Scot Rail investing in the safety of its doors. The Big Issue puts the care of the homeless above getting major profits by reinvesting much of the profit in to ways of training the street sellers
Improving customer satisfaction
A firm will achieve this by offering customer complaint cards or a good returns policy at shops
